Comerica Q4 Earnings: Revenue And EPS Fall Short Amid Loan Pressures, Eyes 2025 Growth

Comerica Inc CMA shares are trading lower in premarket Wednesday after the fourth-quarter FY24 earnings result.

The financial services company reported a fourth-quarter revenue increase of 5.5% to $825 million, missing the analyst consensus estimate of $837.98 million.

Net interest income increased $41 million to $575 million quarter-on-quarter, reflecting a strategic growth in core interest-bearing deposits and relationship-focused pricing.

Adjusted EPS of $1.20 also missed the consensus estimate of $1.28.

Average loans in the fourth quarter amounted to $50.62 billion and the return on average assets stood at 0.85%. Efficiency ratio for the quarter was 69.51.

Nonperforming assets increased $58 million to $308 million, or 0.61% of total loans and foreclosed property, compared to 0.50% in the third quarter of 2024.

The company held $850 in cash and equivalents as of December 31, 2024.

Curtis C. Farmer, Comerica Chairman and Chief Executive Officer, stated, “As expected, loans were pressured by paydowns in Commercial Real Estate, but we saw promising signals across other businesses that support our outlook for growth in 2025. Although some uncertainty remains, we believe customer sentiment is generally more optimistic about the future of the economy and plans for increased investment in their businesses.”

Outlook: Comerica sees FY25 net interest income growth of 6% – 7%, including the impact of BSBY cessation.

For the first quarter, the company expects net interest income to decline 1% – 2% sequentially, including the impact of BSBY cessation.

The company targets share repurchases at approximately $50 million in the first quarter of 2025.

Price Action: CMA shares traded lower by 1.78% at $65.20 in premarket at the last check Wednesday.

Image: Shutterstock/ fizkes.